Today, Apple Inc Chief Executive Tim Cook will face U.S. lawmakers’ questions about whether the iPhone maker’s App Store practices give it unfair power over independent software developers. Since Apple has full control over the apps published over the App store, independent developers have claimed that Apple is claiming around 15-30% of commission on many app store purchases.
Also, its prohibitions on courting customers for outside signs-ups, and what some developers see as an opaque and unpredictable app-vetting process. As per independent developers, the App Store was launched in 2008 with low commission rates to attract developers, but the idea has changed now, and the App store is claiming the highest rate of commission right now.
As per Apple, the App Store provided one set of rules for every developer, without special deals and terms for anyone. When the App Store was launched, placing a product or selling it through a retail store cost 50% expenses and commission, which Apple said was brought down to 30% through their platform. But the apps were only accepted after being reviewed by Apple and using Apple’s billing system. It was done to maintain customer privacy and also provide them a trusted payment system through all apps on the App Store. Since then, developers have been complaining to Apple about the commission rates.
However, Apple feels that the 30% commission is justified as Apple provides an extensive system for developers for which thousands of Appl engineers maintain and test the server. However, developers feel that since Apple and Google have a duopoly on the app market, they should lower down the commission rates for apps on their virtual store. As a developer, you only have two storage options and have no way around the high commission fee.